JetBlue Airlines 2012 Annual Report Download - page 10

JETBLUE AIRWAYS CORPORATION-2012 10K06
PART I
ITEM 1. Business
Overview
JetBlue Airways Corporation is a passenger airline known as much for its
award-winning customer service and free TV as for its competitive fares.
JetBlue believes it offers its customers the best main cabin experience
in markets it serves with a strong core product and reasonably priced
optional upgrades. JetBlue operates primarily on point-to-point routes with
its fl eet of 127 Airbus A320 aircraft and 53 EMBRAER 190 aircraft — one
of the youngest and most fuel-effi cient fl eet of any major U.S. airline. As
of December31, 2012, we served 75 destinations in 23 states, Puerto
Rico, the U.S. Virgin Islands, Mexico and 12 countries in the Caribbean
and Latin America. JetBlue is New York’s Hometown Airline. Most of our
fl ights have as an origin or destination one of our six focus cities: New
York, Boston, Fort Lauderdale, Los Angeles (Long Beach), Orlando and
San Juan, Puerto Rico. By the end of 2012, we operated an average of
750 daily fl ights. For the year ended December31, 2012, JetBlue was
the sixth largest passenger carrier in the United States based on revenue
passenger miles as reported by these passenger airlines. As used in this
Form 10-K, the terms “JetBlue”, “we”, “us”, “our” and similar terms refer
to JetBlue Airways Corporation and its subsidiaries, unless the context
indicates otherwise.
JetBlue was incorporated in Delaware in August1998 and commenced
service February11, 2000. Our principal executive offi ces are located at
27-01 Queens Plaza North, Long Island City, New York 11101 and our
telephone number is (718)286-7900.
Where You Can Find Other Information
Our website is www.jetblue.com. Information contained on our website is
not part of this report. Information we furnish or fi le with the SEC, including
our Annual Reports on Form10-K, Quarterly Reports on Form10-Q, Current
Reports on Form8-K and any amendments to or exhibits included in these
reports are available for download, free of charge, on our website soon
after such reports are fi led with or furnished to the SEC. Our SEC fi lings,
including exhibits fi led therewith, are also available at the SEC’s website
at www.sec.gov. You may obtain and copy any document we furnish or
fi le with the SEC at the SEC’s public reference room at 100 F Street, NE,
Room 1580, Washington, D.C. 20549. You may obtain information on
the operation of the SEC’s public reference facilities by calling the SEC
at 1-800-SEC-0330. You may request copies of these documents, upon
payment of a duplicating fee, by writing to the SEC at its principal offi ce
at 100 F Street, NE, Room 1580, Washington, D.C. 20549.
Our History
JetBlue began operations in 2000 as a well-funded start-up, which afforded
us the ability to make signifi cant investments in our product offerings,
including all new aircraft equipped with leather seats and LiveTV. This
product investment combined with superior customer service at low fares
led to widespread brand recognition and early success, predominantly
with leisure travelers in New York. By the end of 2006, JetBlue employed
over 10,000 employees (to whom we refer as Crewmembers), operated
500 daily fl ights with a fl eet of 119 aircraft and generated annual revenues
exceeding $2 billion. A heavy debt load taken on to fi nance this rapid early
growth, a wide-spread economic recession and record high energy prices
led to annual losses in 2005 and 2006. It became clear to us this rate of
growth, as then refl ected in our aircraft order book, if not moderated, was
unsustainable. Over time, we modifi ed our growth rate through the sale
and deferral of aircraft. Additionally, we began to structure our network and
invest in offerings targeted to attract a higher mix of business travelers,
particularly in Boston. At the same time, we allocated growth to Caribbean
routes which typically mature to profi tability faster than domestic routes.
As we complete our 13th year of operations, we believe our differentiated
product and service offering combined with our competitive costs enables
us to fi ercely compete in high-value geography.
We are the only major U.S. airline which began operations post-deregulation
to survive into a second decade of operation on our own. Our continued
plans to grow organically and our future success are dependent upon our
ability to adapt to an ever-changing environment and enhance shareholder
value. We believe we are well-positioned to do so.